How to start a company In Austria

Your business idea New or different business idea („me too“) Taking over a business Taking a Franchise – Who will benefit? – Market? – Competitors?

Your Qualification Are you an entrepreneur? Personal characteristics? How do your family feel about this? Expertise? Do a test:

Business Plan Helps in decision making Planning tool: Plan 4 You Easy Minimum turnover calculation (how much money must be turned over to make money?) Business plan handbook

Type of trade „free“ or regulated? Evidence of formal qualification – Individual qualification – Qualification exam – Managing director under trade law

Legal form Individual company – Trade registration – Unlimited personal liability – P+L statement Partnership – 2 partners – Unlimited liability – P+L statement Limited liability company – € base capital – Accounting liability – 25% corporation tax – 25% capital gains tax

The ideal legal form Does not exist, depends on: – Capital available, liability risk, size, taxes, etc. Individual company advantages: – Quickly established – One „boss“ Partnership advantages – Shared risk – Mutual support, complementing each other – Capital problem easier

Social insurance Mandatory for – Single businesses – Partners – Liable managers – Liable partners in a plc – Self-employed entrepreneurs

Insurance Health insurance7,65 % Pension insurance17,5 % Insurance for the self-employed 1,53 % Accident insurance8,48 % Unemployment insurance6 %

Income tax Based on yearly profit Between 0 % and 50 % per year tax free Quarterly advance payment Tax free profit margin 13 % (up to )

Turnover- or Value Added Tax On all goods and services provided 20% of net price Self-assessment For small businesses: Tax free up to € turnover

Financing your business Self-financing or borrowing State support / incentives Law for the support of new businesses Tax and fee exemptions for new companies